CO-OPERATIVE DAIRYING.

Hawera Star, Volume XLIX, 30 August 1929, Page 6

CO-OPERATIVE DAIRYING.

AWATUNA COMPANY

ANNUAL MEETING OF SUPPLIERS

Forty-five suppliers and shareholders weze present at the thirty-fifth annual general meeting of the Awatuna Co-operative Dairy Company, Ltd., held in the Awatuna Hall yesterday. Mr S. R. Farquhar, chairman of directors, presided.

CHAIRMAN S REVIEW. In moving the adoption of the report and balance-sheet, the chairman said that he would like to begin at the point where he left off at this time last year. It would, he said, be unnecessary to refer to the crisis that occurred, and no need to say how disappointed all were with the prices caused by the anticipation of a higher price. But there was much on which they had to he congratulated-—a substantial increase in milk supplied, which was very general all over the province, and on the building of the new factory at Tauhgatara. It was anticipated tllat it would he working to its full capacity, but for part of the season there had been one vat not used. Had, however, the good weather continued a. little longer, they would) have had to- go on to the tenth vat. The company operated in .a district measuring ten miles by five, drawing from all the country up to the- mountain and to a mile below the Eltham Road. The great bulk of the country was producing, but -some of the farms were held in an unproductive condition. Many acres were just as good as what was occupied, provided they were improved, and a large quantity of milk could therefore be brought into the factory. In addition much of the land now farmed was capable of producing 100 per cent more than it- was to-day. The factory was giving ample scope for last year’s output, and it was safe to say the results were over and above that of any past year. They had the conveniences and the ability to handle milk, and

too manuiacruring_ resulted m a saving where previously there was a loss. In the past Taungatara had been always a drag and not on a level with Awatuna, but this year it had come up to that level. The milk had been sent in in good condition, and had much improved on previous years; that improvement must continue and increase. If they were to get results they must have a factory able to handle milk iii a way that would lead to the greatest and best results. They knew of the difficulties at Taungatara. in the past, but now it was the business of the directors to make provision for the supply that was expected, and fo.r this reason they .had to make the seven vat factory at Awatuna into a ten vat concern.

There had been a 19 per cent increase in milk supplied, the greatest previously being 17 per cent three years ago. He had been 30 years in Awatuna, and the policy was always to advance and never to look back* Cleanliness, efficiency, and up-to-date methods generally resulted in getting quality, which must h€ allied with quantity also.

In the past they had gone into schemes that would he a help to the industry, and they had aided the company. Rennet was now manufactured to give all the supply needed in the Dominion, and the company was now self-supporting, a very good) thing for New Zealand, for the country was now free from the need of outside -supplies. On the farms, lie said, the milking sheds- must he improved. Nothing

else would do, for they were competing with other countries and they must do so on even torins.

THE PROSPECTS. j.- rices were comparatively good, but not juso as goou as tuey vouicl wish. season ciiey averaged, yos, anu r.ne latest quotation was Pis to 935. me company still had some produce to ■sell, ana hoped the figures would go liigner. They had estimated on 9us for tne amount held over, which was pretty high, but. they did not like, to go lower because they hoped prices won Id improve'.

The total output was about 1100 tons of butter and cheese, and in the carriage of this the back loading from Eltham practically, paid the cost. They had a problem to solve as to whether it was advisable to still send to Eltham, because the- lorry used showed signs of wear -and repairs -heavy. They now considered it advisable to send the produce to Auroa station, making a difference in freight of 4s lid per ton. The- company had been promised a rebate in freight if they agreed to send to Eltham for three years, but had not -accepted this because of the heavy wear and tear on the lorry or the necessity of purchasing another one. That w’ould be costly, and so they had decided on Auroa.' The -secretary (Mr Niccolls) had attended a conference at Otakeho concerning freights, and there would bea reduction of practically 2s off t-ho gross rate of 4s lid. The -sending through Auroa would mean keeping the lorry in good order, because it was much easier liaulage to that -station. The lorry had -been overhauled , and after many repairs had been carried out they were- assured it would be as good as new, and the driver was well satisfied It should now last, for many years. The- Awatuna factory had been working to its full capacity, but it was not fitted to handle a great bulk ■of milk, and they must always aim at quantity as well as quality. Taungatara factory was now fully equipped, and was in every way one of the mostconvenient on the coa-st. He- said he was convinced this was right. The main part of the board’s work, said the chairman, was to help suppliers in every way possible, and it was satisfactory to note that they were getting the very best results.

THE COMING SEASON. The directors, he added, had not dealt with the output fo-r the -season, and so tar no good prices were offering, although avances were available of Is 4-Jd for butter and Bjd for cheese. This was really higher than expected andprospects were brightening and he hoped the year would turn out quite successful. STATISTICS.

, The chairman then gave details for the past seven years o-f the totals of butter-fat as follow, showing little difference for four yeans to 1926, and then a very -big increase: 1923, 723.587ib5; 1924, 770.1261b.5-; 1925, 746.1161b;5; 1926, 700,393165. ; 1927, 824.5321b,5; 1928, 798.344'it05; 1929, 937.333'Jib5. Charges to f.0.t0. per lib 1 , of but torfat had been dissected by the secretary for the past two seasons and ini every ca-se hut three- showed improvements-. These were as- follow for 192728 anl 1928-29 respectively: Wages, 1.069 d and ,998 d ; fuel, ,391 - and ,324 d ; requisites, .39Sd and .376 d; crates, .588 d and .504 d; repairs and depreciation, ,280 d; and .420 d; cartage, ,151-d and . 129 d; railage ,241 d and .272 d; levy •371 d and ,367 d; interest, ,028 d and .022 d ; insurance, etc., ,077 d and ,034 d ; stamps, etc., ,128-d and .llld. The total costs to f.0.t0. were 3.70 d and 3.62 d. But for depreciation and repairs the cost would have last -season been below 3Td.

j • Remarking on the general position, the chairman said the assets were the j same as- last year, and wore free of all - liability. Buddings and plant were ail | their own. Taking the position to-day j and going -back some years and recall-i ing what they had to contend with, the chairman said that the directors had met and ® unmounted all difficulties, and showed added assets totalling aho-ut £SOOO. They wished to. help suppliers still more and were prepared to effect further improvements in the future. They had a new factory, which was one of the greatest assets they could have and instrumental in turning out the host product for marketing. Further improvement® made had consisted of increasing the steam capacity by lengthening the smoko stack and udd-l ing to the furnace and they were able! to put the material through tile pasteuriser one-third more quickly. There had, he said, been difficulty with cooling, because the water in the stream was not. cold enough and therefore they had puit in two 600 gallon tanks, which Were filled from the well, and gave the desired effect.

Replying to reserves- put aside, the chairman said these were good and had i ncreased steadily. It had been suggested that these reserves, should be taken and distributed to suppliers as fully paid Shares-, hut this- was considered not wise.

Two itenis which, in his -opinion, were too high were interest £4OO and fuel, in which, however, there was last year a saving of £SO0 —equal to ] -Srf on all the output.

THE PAY-OUT. During the year the directors -had paid out Is 8d from the toeginniug of the season, and had not penalised suppliers, .(hut iu the autumn it was- oon- : sidered wise to reduce this to a (lower i 'level, owing to reduced market figures. The pay-out was, however, always ganged by the amount the produce realised and as near to that as possible. That] was their policy and' it was. a good one. The increased pay-out in the spring months was a great help to many sup- ; pliers.

The land held at the factory was 9., acres, -and it was- valued ah £-1400. They would not sell at this figure and could not now buy lor that price. They had also ten or eleven cottages, worth all that was shown in the balance-sheet. He suggested revaluing all assets to get the true values. The position was very good, and it was satisfactory' to know that all the properties -belonged to the company without any liability. Mr E. A. Collins seconded the motion. QUESTIONS,

In reply to Mr Smart, the chairman ■said that the company owned the-land, buildings and lorries and that they were- quite free of detotand there- was be-sides £4OO m liquid assets in excess. To a question in regard to loans made the chairman said that all the old Jo-a-n.s had been wiped out and those now made were all sound. These loans just equalled the overdraft.

He -said to a supplier that he believed there would be no more calls or the Box Company shares. He hoped it would turn out all right, but lie could not- say what the position was likely to be.

The store warrants- account, isaid the chairman, represented advances against produce an store, which were cleared as soon a-s the produce wa-s shipped. It was just a temporary loan. In reply to Air Barker, he said that there- should be a considerable saving in the oo.st of cartage toy going to- Auroa station, (but they would lose some of the back loading they secured toy goin-o-to Eltham. ‘ ‘

The chairman -stated that they had made standardised cheese at Taungatara soon after it was authorised tov the Agricultural Department, and there was no delay in installing waxing plants at both factories. They did not, however, like to go too far with this process.

In regard to curing rooms, the chairman said that if was impossible to store chee-so at a reasonable temperafun e, Ibecautee there w’as too much cheese for the space available, and. they must make more accommodation for handling the intake of milk and the output, of qheeso. Tbe motion was carried.

DIRECTORS. r« fu ie firing directors, Messrs J 3. A. Collins and' H. Davison, were re-elected' unopposed. . Tf- A. Lennon wa© re-appointed auditor at the same fee ns before. It- w’aisi resolved that the ohia.irmain’s honorarium and directors’ fees he. the same- as last year. HOT WATER’, Dissatisfaction was e.vpreisescl by Air ijiirkc with hot water a rrnnwni ehts at Awatuna. "

The;, chairman said that tine, early suppliers got the hot water and the later only lukewarm water. To o-ire all .suppliers boiling water woiiTcf be very costly for a. new 35 lup. boiler would be required, and this was otit. or the question. The cost would! proha.my be about £70(). The general manager (Mr J. Flavin) said Ire considered su—dions should ail! hare a heater on th* farms?. Tb e water at. the- factory wa« never above 180 degrees, and by the time it. was taken home, it was nearly cold. He said in j reply to Mir Burke tihat every aani should bo scaitieci. The isnia.ll cost of insta'lhng a heater would soon lie amply re- 1 paid. I Air H. Davison said 1 that it wouilid 1 lie doing a good tram to supplier® if hot water supply were cut out. A supplier • urged everyone to install an electric heater. i Another supplier ; T move that hot water be out out. ) The chairman : ft is cut out.

AQLK TROUBLES. The general manager said that there had been much trouble with non-acid m cspcc-iallv in the autumn, and it leatly looked serious. He urged suppliers to take every precaution po as to get. m possible, the milk in the autumn as good as in the spring.

[ THE ,\k\v factory. The chairman commented on the great asset possessed in the new factory, and •said that everything there wa» as eood as could be. “W- should have been well in pocket.'’ lie ,added, “if we had buii-l jf.. years ago.’’ Regarding the new factory, the.cilia.irnian said he hoiped all would fake an interest in it and make any recommendations considered' necessary. The building was forced on the bound and rhe.y proposed to begin bui'iding in the iautumn, so that, they would have to stop cheese-making somewhat, earlier i than usual. They wished to hamper suppliers as little- as possilde. HERD TFSTINB. I Mr Barker said that testing should ho clone, lam-d they were behind the times in not going in for thy scheme. The eh airman sold if was a, matterfor the individual supplic-.. and the directors wete not taking up Ihe question. He knew, however, that tiie association woifld. come into thy district if encouraged by pmspf*ct>s.

Mr Barker said tie considered, directory should try to help to, form a group.

Air Holland stressed the great need of the scheme, and said that, larmens did not otherwise know what sort of cow-® they were milking. He quoted a, case of Waikato fanners paying high prices for calves from tested cows.

On the motion of Air Smart, it was agreed that the directors be recommended to help in the matter of forming a group and oh a show of hands, about eight, agreed to come into the .scheme.

HEX FRA L. U'n .Vi i iTiu ika s mdiioii, ine lineu.*tor.s were asiceci to put a fool on fne wiiiey taiiK at Awatinm. He sa.ul ne could ada water- to the whey on his iarm it required. it was suggested that rife next annual meeting oe ne.ct earner in me evening, and ft was agreed that this be carried out. Air ©mart referred to the need ror mort room a(• Tmingatara to stoic cheese, and' said til at each, factory suiould have aneqiiate facilities lor its own output.

The chairman said that there was not land enough at Taungatara to give the extra, space and cheese was sent to Awatuna dally; whence it cod id be more easily railed. They would save up to 50 per cent, bv building iat Awatuna. 1 In reply to a question, the chairman [said that the new factory was estimated 1 to cost not more than £BOOO, and there would lie no difficulty iii financing the scheme. A hearty vote of thanks was car ried to- the general manager, managers and staffs, the secretary, the. Press and also to the ladies for supplying luncheon and afternoon tea. The chairman said that the staffs had given excellent service, and in this he would include the lorry driver. At the first meeting of the new board, Mr Farmihar was elected chairman unopposed.